FirstMac is set to market its second mortgage-backed bond issue for the year. This time the financing is not business as usual but to refinance the majority of the home loan portfolio acquired from HSBC at the end of last year.The FirstMac Mortgage Funding Trust Series 1E-2007 will be for $1.4 billion and is the biggest RMBS to date for the company. The trust comprises two tranches with a $500 million domestic issue and a 500 million euro offshore issue.The loan portfolio was acquired through the purchase of HSBC's broker-introduced mortgage book in December 2006. FirstMac bought $2.3 billion worth of mortgages from the bank at the time.FirstMac currently funds more than 30,000 home loans with a portfolio of in excess of $8 billion, the Queensland-based firm said yesterday.HSBC sold this loan pool on the grounds that it was insufficiently profitable and thus the characteristics of the loan pool are interesting in light of the bank's view.The mortgage pool is composed solely of full documentation loans based predominately in the eastern states; the capital city composition is 87 per cent with an average loan size of $205,000.The current weighted average loan to valuation ratio is 67 per cent, reflecting the twenty-month weighted average seasoning.HSBC relied almost exclusively on desktop valuations for the loan pool and failed to collect data on the employment status of borrowers.HSBC, which has continued to fund the loans in the interim, will be the sole lead for the international issue, with ANZ acting as joint lead for the Australian dollar tranche. This will be the Queensland-based non-bank lender's tenth public issue of mortgage securities, following in the footsteps of the first Euro bond transaction in March 2006. FirstMac has securitised approximately $5.5 billion of residential home loans in the global market.